MEXICO CITY, April 29, 2020 /PRNewswire/ -- Banco
Santander México, S.A., Institución de Banca Múltiple, Grupo
Financiero Santander México (NYSE: BSMX; BMV: BSMX),
("Banco Santander México" or "the Bank"), today announced financial
results for the three-month period ending March 31st, 2020.
Banco Santander México reported net income of Ps.5,414 million
in 1Q20, representing increases of 2.3% YoY and 10.1% QoQ.
HIGHLIGHTS
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Results
(Million pesos)
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1Q20
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4Q19
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1Q19
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%QoQ
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%YoY
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Net interest
income
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16,896
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16,727
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16,449
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1.0
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2.7
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Fee and commission,
net
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4,697
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4,325
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4,426
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8.6
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6.1
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Core
revenues
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21,593
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21,052
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20,875
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2.6
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3.4
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Provisions for loan
losses
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5,165
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4,862
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4,318
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6.2
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19.6
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Administrative and
promotional expenses
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9,785
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10,344
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9,256
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(5.4)
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5.7
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Net income
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5,414
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4,916
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5,291
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10.1
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2.3
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Net income per
share1
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0.80
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0.73
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0.78
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9.9
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2.1
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Balance Sheet
Data (Million pesos)
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Mar-20
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Dec-19
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Mar-19
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%QoQ
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%YoY
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Total
assets
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1,802,210
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1,411,994
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1,304,294
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27.6
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38.2
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Total
loans
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775,809
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713,680
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691,226
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8.7
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12.2
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Deposits
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810,340
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692,537
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702,644
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17.0
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15.3
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Shareholders´
equity
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141,041
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138,695
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132,366
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1.7
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6.6
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Key Ratios
(%)
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1Q20
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4Q19
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1Q19
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bps
QoQ
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bps
YoY
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Net interest
margin
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5.45
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5.39
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5.58
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6
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(13)
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Net loans to deposits
ratio
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92.94
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99.95
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95.41
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(701)
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(247)
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ROAE
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15.48
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14.88
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16.40
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60
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(92)
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ROAA
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1.35
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1.41
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1.58
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(6)
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(23)
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Efficiency
ratio
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43.95
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47.21
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44.81
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(326)
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(86)
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Capital
ratio
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16.23
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16.37
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16.90
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(14)
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(67)
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NPLs ratio
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2.16
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2.28
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2.15
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(12)
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1
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Cost of
Risk
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2.65
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2.60
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2.69
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5
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(4)
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Coverage
ratio
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135.17
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132.02
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140.06
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315
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(489)
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Operating
Data
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Mar-20
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Dec-19
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Mar-19
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%QoQ
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%YoY
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Branches
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1,211
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1,209
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1,214
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0.2
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(0.2)
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Branches and
offices2
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1,406
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1,402
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1,390
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0.3
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1.2
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ATMs
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9,096
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9,015
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8,507
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0.9
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6.9
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Customers
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18,374,959
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18,134,468
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17,034,317
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1.3
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7.9
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Employees
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19,638
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19,975
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19,291
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(1.7)
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1.8
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1) Accumulated
EPS, net of treasury shares (compensation plan) and discontinued
operations. Calculated by using weighted number of
shares.
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2) Includes cash
desks (espacios select, box select and corner select) and SMEs
business centers. Excluding brokerage house
offices.
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Héctor Grisi, Banco Santander México's Executive President
and CEO, commented: "In these unprecedented times, we
have responded with determination to the COVID-19 pandemic by
focusing on three key priorities: safeguarding the health of our
bank's employees, ensuring the wellbeing of our customers, and
strengthening business continuity. We have implemented various
measures to help prevent the spread of the coronavirus, such as
stricter sanitization procedures and work-from-home protocols using
enhanced IT resources. We also initiated a debt relief program for
our retail and SME customers, offering deferred payments on their
loan's principal and interest for up to six months without any
penalty or cost. And we have launched ongoing communications
campaigns encouraging people to stay at home and expressing our
appreciation for the invaluable work being done by healthcare
professionals today.
Despite this challenging period, we delivered a solid first
quarter with no material impact from the pandemic on our results.
Net income grew 2% year-over-year, supported by fees and market
related income that compensated for softer net interest income
growth and a material non-recurrent increase in provisions, which
are not related to higher expected loan losses. Loan and deposit
volumes, on the other hand, started to reflect the new environment,
with loans expanding 12% during the quarter to a much higher level
than we had anticipated. Commercial loans registered a significant
spike of 16% year-over-year, as our clients drew upon their
committed lines of credit to cope with the expected economic
effects of the pandemic. As a result of this lending activity, our
commercial deposits increased substantially, expanding total
deposits 15% compared to last year. Despite the sudden increase in
loan demand in March, our capital and liquidity positions remain at
high levels.
I wish to emphasize that we are operating from a position of
strength as we enter this crisis period, owning to our robust
liquidity and capital positions as well as healthy asset quality.
This strength is reflected in our successful issuance of debt this
month, which demonstrates the market's confidence in our bank.
Equally important, the steps we have taken to protect our employees
and the robust digital platform that we now have in place will help
ensure that we continue delivering the high levels of customer
service that distinguish our bank. Our aim is to emerge from this
crisis as a stronger organization."
1Q20 EARNINGS CALL
DIAL-IN INFORMATION
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Date:
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Thursday, April,
30st, 2020
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Time:
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09:00 a.m. (MCT);
10:00 a.m. (US ET)
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Dial-in
Numbers:
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1-877-407-4018 US
& Canada 1-201-689-8471 International & Mexico
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Access
Code:
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Please ask for
Santander México Earnings Call
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Webcast:
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http://public.viavid.com/index.php?id=139099
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Replay:
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Starting: Thursday,
April 30st, 2020 at 1:00 p.m. (US ET)
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Ending: Thursday, May
7th, 2020 at 11:59 p.m. (US ET)
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ET Dial-in number:
1-844-512-2921 US & Canada; 1-412-317-6671 International &
Mexico Access Code: 13701875
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ABOUT BANCO SANTANDER MÉXICO (NYSE: BSMX; BMV:
BSMX)
Banco Santander México, S.A., Institución de Banca
Múltiple, Grupo Financiero Santander México (Banco Santander
México), one of Mexico's leading
banking institutions, provides a wide range of financial and
related services, including retail and commercial banking,
financial advisory and other related investment activities. Banco
Santander México offers a multichannel financial services platform
focused on mid- to high-income individuals and small- to
medium-sized enterprises, while also providing integrated financial
services to larger multinational companies in Mexico. As of March 31,
2020, Banco Santander México had total assets of
Ps.1,802 billion under Mexican Banking GAAP and more than 18.3
million customers. Headquartered in Mexico City, the Company operates 1,406
branches and offices nationwide and has a total of 19,638
employees.
LEGAL DISCLAIMER
Banco Santander México cautions that this presentation may
contain forward-looking statements within the meaning of the U.S.
Private Securities Litigation Reform Act of 1995. These
forward-looking statements could be found in various places
throughout this presentation and include, without limitation,
statements regarding our intent, belief, targets or current
expectations in connection with: asset growth and sources of
funding; growth of our fee-based business; expansion of our
distribution network; financing plans; competition; impact of
regulation and the interpretation thereof; action to modify or
revoke our banking license; exposure to market risks including
interest rate risk, foreign exchange risk and equity price risk;
exposure to credit risks including credit default risk and
settlement risk; projected capital expenditures; capitalization
requirements and level of reserves; investment in our information
technology platform; liquidity; trends affecting the economy
generally; and trends affecting our financial condition and our
results of operations. While these forward-looking statements
represent our judgment and future expectations concerning the
development of our business, many important factors could cause
actual results to differ substantially from those anticipated in
forward-looking statements. These factors include, among other
things: changes in capital markets in general that may affect
policies or attitudes towards lending to Mexico or Mexican companies; changes in
economic conditions, in Mexico in
particular, in the United States
or globally; the monetary, foreign exchange and interest rate
policies of the Mexican Central Bank (Banco de México); inflation;
deflation; unemployment; unanticipated turbulence in interest
rates; movements in foreign exchange rates; movements in equity
prices or other rates or prices; changes in Mexican and foreign
policies, legislation and regulations; changes in requirements to
make contributions to, for the receipt of support from programs
organized by or requiring deposits to be made or assessments
observed or imposed by, the Mexican government; changes in taxes
and tax laws; competition, changes in competition and pricing
environments; our inability to hedge certain risks economically;
economic conditions that affect consumer spending and the ability
of customers to comply with obligations; the adequacy of allowance
for impairment losses and other losses; increased default by
borrowers; our inability to successfully and effectively integrate
acquisitions or to evaluate risks arising from asset acquisitions;
technological changes; changes in consumer spending and saving
habits; increased costs; unanticipated increases in financing and
other costs or the inability to obtain additional debt or equity
financing on attractive terms; changes in, or failure to comply
with, banking regulations or their interpretation; and certain
other risk factors included in our annual report on Form 20-F. The
risk factors and other key factors that we have indicated in our
past and future filings and reports, including those with the U.S.
Securities and Exchange Commission, could adversely affect our
business and financial performance. The words "believe," "may,"
"will," "aim," "estimate," "continue," "anticipate," "intend,"
"expect," "forecast" and similar words are intended to identify
forward-looking statements. You should not place undue reliance on
such statements, which speak only as of the date they were made. We
undertake no obligation to update publicly or to revise any
forward-looking statements after we distribute this presentation
because of new information, future events or other factors. In
light of the risks and uncertainties described above, the future
events and circumstances discussed herein might not occur and are
not guarantees of future performance.
Note: The information contained in this presentation is not
audited. Nevertheless, the consolidated accounts are prepared on
the basis of the accounting principles and regulations prescribed
by the Mexican National Banking and Securities Commission (Comisión
Nacional Bancaria y de Valores) for credit institutions, as amended
(Mexican Banking GAAP). All figures presented are in millions of
Mexican pesos, unless otherwise indicated. Historical figures are
not adjusted by inflation.
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SOURCE Banco Santander México, S.A.